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 How much does an #antimoneylaundering governance investigation cost a #fintech?
Previously noted that Australian EML doesn't expect a #moneylaundering compliance investigation (no allegation of money laundering) into one of its recently acquired Irish acquisitions (PFS Card Services Ireland Limited acquired in a deal worth up to €216.9m) to exceed AUD 2million / €1.27mn this Australian financial year which ends 30 June. However it cannot forecast the cost going into the next nor subsequent years. See https://lnkd.in/eg2cm82 (see previous blogs here). Well, it looks likely the costs may go higher if a class action by Shine Lawyers begins to bite, with the Aussie law firm looking for investors who bought shares between December 19, 2020, and May 17, 2021, to join its class action. The law firm says: * “EML did not request a trading halt for almost four days after learning of these concerns and then took another 48 hours to inform the market,” says Australian law firm * “When shareholders invest their money into a company, they do so with the belief that that company will comply with its continuous disclosure obligations. * “Our claim will allege that EML failed in its obligations, significantly impacting share prices for thousands of investors.” Read more by Sean Pollock at https://lnkd.in/efTj2dU Linkedin Post - https://www.linkedin.com/posts/peteroakes_antimoneylaundering-fintech-moneylaundering-activity-6809752916379922432-wNal
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EML Payments Money Laundering Governance Investigation to cost less than $2mn this financial year10/6/2021  In my previous post on EML Payments (EML) (see here) we noted that EML had advised that its Irish regulated subsidiary, PFS Card Services (Ireland) Limited ('PCSIL'), had received correspondence from the Central Bank of Ireland ('CBI'), including a letter received on Friday 14 May 2021 (Australian time) raising significant regulatory concerns ('Correspondence'). The CBI's concerns relate to PCSIL's Anti-Money Laundering / Counter Terrorism Financing ('AML/CTF'), risk and control frameworks and governance. The Correspondence states that the CBI is minded to issue directions to PCSIL pursuant to section 45 of the Central Bank (Supervision and Enforcement) Act 2013.
A few days ago, EML provided the Australian Stock Exchange with a trading update. The trading update also included its Quarter 3 FY2021 update in which EML confirmed: "Current Status:
Communication:
Business Impact:
Some observations:
Further reading - EML Payments Q3 FY21 Trading Update June 2021 (dated 7 June 2021)
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 The ASX Market Announcement says:
"EML PAYMENTS LIMITED (ASX: EML) ("EMU') refers to its request for a trading halt dated 17 May 2021. EML advises that its Irish regulated subsidiary, PFS Card Services (Ireland) Limited ('PCSIL'), has received correspondence from the Central Bank of Ireland ('CBI'), including a letter received on Friday 14 May 2021 (Australian time) raising significant regulatory concerns ('Correspondence'). The CBI is the relevant regulator in Ireland. The CBI's concerns relate to PCSIL's Anti-Money Laundering / Counter Terrorism Financing ('AML/CTF'), risk and control frameworks and governance. The Correspondence states that the CBI is minded to issue directions to PCSIL pursuant to section 45 of the Central Bank (Supervision and Enforcement) Act 2013. The Correspondence does not concern EML's Australian or North American operations, or the operations of PFS' UK subsidiary ('Prepaid Financial Services Limited' which is incorporated in England and regulated by the FCA), or EML's other Irish regulated subsidiary ('EML Money DAC')." ASX Announcement in PDF and at source. |
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